KUALA LUMPUR, Oct 10 — The Madani government has allocated RM46.5 billion to the Health Ministry (MOH) under Budget 2026, up from RM45.3 billion this year, to ensure equitable, quality, and affordable healthcare access.
Prime Minister Datuk Seri Anwar Ibrahim said RM1.2 billion has been set aside to upgrade and maintain public hospitals and clinics, as part of efforts to improve public health infrastructure.
“District hospital wards nationwide will also be upgraded with an allocation of RM100 million, while outdated equipment will be replaced and new advanced tools procured for emerging medical disciplines (RM755 million),” he said when tabling Budget 2026 in the Dewan Rakyat today.
The Malaysian Communications and Multimedia Commission (MCMC) will provide RM650 million, among others, to enhance Internet connectivity at public hospitals, health clinics, maternal and child health clinics, community clinics, and rural clinics.
To address overcrowding in public hospitals, the government will strengthen collaboration to outsource patients to military, university and private hospitals for RM140 million, while RM30 million will be channelled to empower health clinics by providing specialist services.
Anwar said the government will also build new hospitals, clinics, and additional blocks, including the Northern Region Cancer Centre in Kedah, new blocks at the Pontian Hospital in Johor, the Banting Hospital and the Sungai Buloh Hospital in Selangor, and the Sabah Heart Centre at the Queen Elizabeth II Hospital in Kota Kinabalu.
The plans also cover the development of an Advanced Surgical Block at the USM Specialist Hospital in Kubang Kerian, the construction of 13 new health clinics in areas including Machang, Teluk Kemang, Mukah, and Nabawan; and the fast-tracking of the National Cancer Centre in Kuching and Hospital Sultanah Aminah 2 in Johor.
Meanwhile, 4,500 contract doctors will be offered permanent positions next year, while 935 graduates from MOH training institutes will be appointed as permanent nurses, in addition to 833 contract nurses confirmed in permanent posts this year.
“Since 2023, the Madani government has approved 1,500 additional positions to absorb contract doctors into permanent posts, bringing the total to 12,900 contracts converted to permanent roles, including annual intakes,” he said.
With consultation fees for general practitioners unchanged since 2006, the government has agreed to revise the rates to a range of RM10 to RM80, up from the previous RM10 to RM35.
To recognise the dedication of healthcare personnel, including medical and dental specialists, Anwar announced a 40 per cent increase in the On-Call Allowance (ETAP), effective October 1 this year, involving an additional RM120 million.
“For instance, specialist doctors on active on-call duty during public holidays will see their ETAP rate rise to RM350 from RM250. In addition, the government will pilot a public-private partnership project to produce essential medicines and strengthen national pharmaceutical security,” he said.
To address rising medical inflation, a RM60 million joint government-industry fund will be established to introduce affordable basic insurance products for all, alongside the Diagnosis-Related Group (DRG) system's implementation.
To encourage greater insurance participation, the personal income tax relief of up to RM3,000 for life insurance or takaful premiums for self and spouse will be extended to cover children.
The Prime Minister also announced a three-year extension, until 2028, of the full stamp duty exemptions for insurance policies, takaful certificates, and Perlindungan Tenang products.
The MySalam scheme will continue to assist low-income households, having disbursed RM1.2 billion in hospitalisation and critical illness claims, benefiting 1.7 million recipients.
“To encourage private hospitals to assist underprivileged patients, they will be allowed to establish Hospital Welfare Funds managed by companies limited by guarantee (CLBGs).
"Employees Provident Fund contributors may also use their Sejahtera Account savings to subscribe to basic medical and health insurance or takaful (MHIT) plans,” he said.
